Debt Services Makes For A Tough Budget Year For Putnam Co.

Putnam County Budget Committee is expecting a difficult budget year considering two major projects that need funding.

That according to Chairman Ben Rodgers. The committee meets for the first time Monday night.

“I’m guessing we are going to meet more than 10 times,” Rodgers said. “I don’t want tax payers thinking we are wasting their time and money. We’re going to meet quite a bit, but there is a lot to look forward to in the budget committee and a lot of liberation and just a lot of processing. We got to come together as a committee and then get together as a commission and figure out what is best for the county.”

The school board is requesting a new school and the Sheriff’s Department jail expansion is moving forward. Rodgers said that means the county could possibly be issuing up to $90 million in new debt. Rodgers said he thinks the county can handle the projects, but it stretches the debt capacity thin.

The debt service is drove mainly by sales tax revenues and some property tax revenue.

“Sales tax is a big part of that,” Rodgers said. “And the reason we have been able to pay off loans early, bond early is because of our influx in sales tax. It’s just been higher than what we budgeted. But now that we may take on some debt, the commission got to decide that. They got to look at debt capacity. But if we change our sales tax allocation from debt service to any other funds such as the schools, it is going to impact our ability to pay that debt.”

Rodgers said possibly changing the schools sales tax funding to a percentage rather than a set number could still allow debt to be paid while also funding the school system’s growth. Rodgers said currently, sales tax is allocated towards debt services.